Correlation Between Seagen and Viking Therapeutics
Can any of the company-specific risk be diversified away by investing in both Seagen and Viking Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Seagen and Viking Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seagen Inc and Viking Therapeutics, you can compare the effects of market volatilities on Seagen and Viking Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Seagen with a short position of Viking Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seagen and Viking Therapeutics.
Diversification Opportunities for Seagen and Viking Therapeutics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seagen and Viking is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Seagen Inc and Viking Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Therapeutics and Seagen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Seagen Inc are associated (or correlated) with Viking Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Therapeutics has no effect on the direction of Seagen i.e., Seagen and Viking Therapeutics go up and down completely randomly.
Pair Corralation between Seagen and Viking Therapeutics
If you would invest 19,623 in Seagen Inc on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Seagen Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Seagen Inc vs. Viking Therapeutics
Performance |
| Timeline |
| Seagen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Viking Therapeutics |
Seagen and Viking Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seagen and Viking Therapeutics
The main advantage of trading using opposite Seagen and Viking Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seagen position performs unexpectedly, Viking Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Viking Therapeutics will offset losses from the drop in Viking Therapeutics' long position.| Seagen vs. Biomarin Pharmaceutical | Seagen vs. Alnylam Pharmaceuticals | Seagen vs. Exelixis | Seagen vs. Halozyme Therapeutics |
| Viking Therapeutics vs. Terns Pharmaceuticals | Viking Therapeutics vs. Akero Therapeutics | Viking Therapeutics vs. Madrigal Pharmaceuticals | Viking Therapeutics vs. Sarepta Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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